Beyond meat short sellers are going to have to learn to codeShorting was already super expensive. But now, now that the company had their first quaterly earnings release since IPO, the thing is taking off.
Sales rose 215% and are expected to grow tremendously in the future. Now I do not know how it works, but the company is not profitable.
Earnings are something like -1$ per share or so. A growth stock. If they sell way more then they will be profitable?
Maybe they have some flat costs that kill their revenue now but they wo'nt have these costs later on?
I am just interested in following this story and added this stock to my watchlist.
Going to explode.
I hope short sellers had options hedging them or something :D
Maybe we see an absolute explosion in share price followed by a short squeeze and an absolute explosion. Again.
BUT I think with the shorting prices being so high and the shares being almost entirely held by insiders and retail investors (that do not lend shares for shorting because they are noobs & morons), there are very few bears in this market.
Also... if most longs are full noobs/imbeciles... Looks like potentially a massive bubble ahead.
With painfully obvious phases. And just keeps going up. And bounces on the way down "this was the bottom" and obvious stop loss levels.
Looks like something we could call inefficient.
Dumb money that make decisions out of greed and "beating wall street" and "showing to the man" (whatever that means).
Downside should be limited if most people involved are retail baggies? Right? I am not an expert on this tbh.
Should be a super easy one, easy edge just get in and be the first to get out once it stops going up, retail baggies won't be running for the exits, np.
Another point for education purpose, best not to short sell hype stocks dominated by retail until there is a big complacency? Seems to make sense...
This feels like looking at penny stock trading which is literally taking advantage of moron baggies that FOMO and not having the pros competition (since stocks are too small for the pros).
When I look at noob stocks, I never see them gap down 20% like Facebook did a while ago. They do gap up, alot. But I never saw one gap down.
But as I said I am not experimented with this.
What they do though, is they consolidate for a really long time. Looking at Robinhood top hold here:
Actually Bitcoin is the same. 0 institutional interest, they all think it is a ponzi scheme, full inexperienced retail and just bagH0DL all the time.
Super boring, but once in a while it gets to a support and every time "this was the bottom". Once could make a strategy hunting stocks that are mainly
held by unsophisticated retail investors and buying at supports before big rallies, or even simply FOMO buying... (the edge and the difference being of course the experience trader knows when to get out).
I saw somewhere that Activision was a retail favorite.
Idk this could be interesting... to be more diversified in the future.
I probably just stick to currencies commodities and trade bigger and bigger eventually just use options to protect myself.
And stocks just for investing in solid both growth & value companies.
Like a one trick pony. 2 trick pony. Focussing on what I am good at, huge markets I don't need more.
Modern portfolio theory sucks. I rather find rare perls and make big one sided bets.
